Is It Possible for an Equilibrium That Is Consistent with Purely

question 17

Essay

Is it possible for an equilibrium that is consistent with purely competitive conditions to arise in an industry with positive scale economies?
If so, explain how this could happen. If not, why not?

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Definitions:

Moral Decision-Making

The process of evaluating and choosing among alternatives in a manner consistent with ethical principles.

Reassess

The act of evaluating or examining something again to make new judgments or to account for new information.

Recall

The ability to retrieve and reproduce information or experiences from one's memory.

Laissez-Faire

An economic theory advocating minimal government intervention in the affairs of private businesses and individuals.